The US government is suing Fiat Chrysler Automobiles NV (FCA), alleging that some of its diesel pickup trucks and Jeep sport utility vehicles cheat on emissions tests.
The lawsuit filed on Tuesday by the US Department of Justice marks the second time the government has gone after an automaker alleging use of software on diesel engines that allows them to emit more pollution on the road than during US Environmental Protection Agency (EPA) lab testing.
Last year, the government accused Volkswagen AG of cheating on tests, and the company ended up pleading guilty to criminal charges in a scandal that cost it more than US$20 billion in the US alone.
Photo: AFP
In the latest case, the government has alleged that FCA put eight “software-based features” on diesel engines in nearly 104,000 Ram pickups and Jeep Grand Cherokees from the 2014 to 2016 model years. The software allowed the vehicles to emit fewer pollutants during lab tests by the EPA than during normal driving conditions.
FCA’s 3-liter diesel engines emit nitrogen oxide at a much higher rate than allowed under federal laws when on the road, the EPA said in a statement, adding that the company failed to disclose the software during the process to become certified so the vehicles could be sold.
The agency called the software a “defeat device” that changes the way the vehicles perform on treadmill tests in a laboratory.
“Each of these vehicles differs materially from the specifications provided to EPA in the certification applications,” the statement said. “Thus the cars are uncertified, in violation of the Clean Air Act.”
The Italian-American automaker said in a statement on Tuesday that it is disappointed that the lawsuit was filed, because it has been working with the EPA for months to clarify pollution control issues.
FCA has contended that unlike Volkswagen, it did not install the software with intent to cheat on tests.
“The company intends to defend itself vigorously, particularly against any claims that the company engaged in any deliberate scheme to install defeat devices to cheat US emissions tests,” it said.
In the lawsuit filed in Detroit federal court, the government seeks civil fines that could total more than US$4 billion, as well as court orders stopping the company from making or selling vehicles with undisclosed software.
The EPA issued a “notice of violation” against FCA, exposing the software in January in the waning days of the administration of then-US president Barack Obama.
FCA had planned to appeal to the administration of US President Donald Trump for help after Trump had promised fewer government regulations.
At the time, FCA CEO Sergio Marchionne denied any wrongdoing and said the agency was blowing the issue out of proportion.
The EPA and the California Air Resources Board are still discussing with FCA ways to make the vehicles comply with federal and California pollution laws.
FCA said it still hopes to resolve the matter in negotiations.
“The nature and timing of any resolution of this issue are uncertain,” the EPA statement said.
The lawsuit is another example of stepped up enforcement of diesel emissions cases worldwide after the Volkswagen scandal.
Earlier on Tuesday, German automaker Daimler AG said that prosecutors would search several of its offices in Germany as part of a preliminary investigation into suspected manipulation of diesel emission controls.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
Apple Inc has been developing a homegrown chip to run artificial intelligence (AI) tools in data centers, although it is unclear if the semiconductor would ever be deployed, the Wall Street Journal reported on Monday. The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter. The server project is code-named ACDC (Apple Chips in Data Center) within the company, aiming to utilize Apple’s expertise in chip design for the company’s server infrastructure, the newspaper said. While this initiative has been
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that revenue would rise moderately in the second half of this year, driven primarily by robust demand for advanced wafers used in high-bandwidth memory (HBM) chips, a key component of artificial intelligence (AI) technology. “The first quarter is the lowest point of this cycle. The second half will be better than the first for the whole semiconductor industry and for GlobalWafers,” chairwoman Doris Hsu (徐秀蘭) said during an online investors’ conference. “HBM would definitely be the key growth driver in the second half,” Hsu said. “That is our big hope
Clambering hand-over-hand, sweat dripping into his eyes, a durian laborer expertly slices a cumbersome fruit from a tree before tossing it down to land with a soft thump in his colleague’s waiting arms about 15m below. Among Thailand’s most famous and lucrative exports, the pungent “king of fruits” is as distinctive in its smell as its spiky green-brown carapace, and has been farmed in the kingdom for hundreds of years. However, a vicious heat wave engulfing Southeast Asia has resulted in smaller yields and spiraling costs, with growers and sellers increasingly panicked as global warming damages the industry. “This year is a crisis,”